Kaiser Foundation Hospitals and Health Plan Report Fiscal Year 2013 and Fourth Quarter Financial Results
OAKLAND, Calif., Feb. 14, 2014 /PRNewswire/ -- Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc. and their subsidiaries reported today that combined total operating revenue for 2013 was $53.1 billion, compared to $50.1 billion in 2012. Operating income for 2013 was $1.8 billion, equal to 3.4 percent of operating revenue, compared to $1.7 billion, equal to 3.4 percent of operating revenue, in 2012. Net loss from discontinued operations, which included the previously announced divestiture of Ohio operations, was $119 million in 2013, compared to $31 million in 2012. Net non-operating income was $1.0 billion in 2013, compared to $922 million in 2012. As a result, net income for 2013 was $2.7 billion, compared to $2.6 billion in 2012.
As nonprofit organizations, KFH/HP are committed to making investments in care-delivery facilities and technology supporting our members, patients and the communities we serve. Capital spending by KFH/HP in 2013 was $3.3 billion, compared to $3.5 billion in 2012. Capital investments in new and upgraded health care facilities made KFH/HP a major source of construction jobs in California, where capital spending includes the current phase of seismic upgrades occurring throughout the state. KFH/HP opened two new hospitals and 14 new medical office locations across its regions in 2013.
Combined total operating revenue for the quarter ending Dec. 31, 2013, was $13.5 billion, compared to $12.5 billion in the same period in 2012. Operating income was $117 million in the fourth quarter of 2013, compared to $178 million in the same quarter of the prior year. Net non-operating income was $400 million in the fourth quarter of 2013, compared to a net non-operating income of $329 million in the same quarter of 2012. Net income from discontinued operations was $12 million in the fourth quarter of 2013, compared to $2 million in the same quarter of 2012. As a result, net income for the fourth quarter was $529 million, versus $509 million for the same period in 2012. Capital spending in the fourth quarter of 2013 was $1.0 billion, consistent with capital spending in the fourth quarter of 2012.
Total membership increased by approximately 30,000 members over the past year. As of Dec. 31, 2013, membership totaled approximately 9.1 million members.
"In 2013, we maintained a consistent operating income as a percent of revenue; it is at a level that allows us to continue making investments in the facilities, technology and care advances that meet the needs of our members, customers and communities," said Chief Financial Officer and Executive Vice President Kathy Lancaster.
In 2013, KFH/HP provided approximately $2.0 billion, 3.7 percent of its operating revenue, in support to community benefit programs and services. KFH/HP devote resources to improve the health of our members and the communities we serve. Our community benefit investment supports a wide range of programs that provide care for low-income individuals, support community-based health partnerships, conduct research, train health care workers, and expand access to health care within the safety net.
"As nonprofit health organizations, our financial performance shows we are operating at a level to consistently deliver high-quality health care and service to our members and customers," said Chairman and Chief Executive Officer Bernard J. Tyson. "Going forward, we will continue to push ourselves to be even better in quality and service with an even greater emphasis on affordability."
Kaiser Permanente has demonstrated ongoing leadership in providing new and innovative ways to improve care and the total health of its members and patients. All Kaiser Permanente members can access My Health Manager, Kaiser Permanente's personal health record, to manage their personal health information online. In 2013, members viewed 34.5 million laboratory results, exchanged 14.8 million emails with their Kaiser Permanente doctors and caregivers, and refilled 14.8 million prescriptions online.
Except for historical information contained herein, the matters discussed in this media release are forward-looking statements that involve risks and uncertainties. Actual results may differ materially based on a number of factors including, but not limited to: the impact of competitive products and pricing; government regulations; changing membership requirements and the change in business and economic conditions. Forward-looking statements are based on information as of the date of this media release, and we assume no obligation to update or revise any of these forward-looking statements, whether as a result of new information, future events or otherwise.
About Kaiser Permanente
Kaiser Permanente is committed to helping shape the future of health care. We are recognized as one of America's leading health care providers and nonprofit health plans. Founded in 1945, our mission is to provide high-quality, affordable health care services and to improve the health of our members and the communities we serve. We serve approximately 9.1 million members in eight states and the District of Columbia. Care for members and patients is focused on their total health and guided by their personal physicians, specialists and team of caregivers. Our expert and caring medical teams are empowered and supported by industry-leading technology advances and tools for health promotion, disease prevention, state-of-the art care delivery and world-class chronic disease management. Kaiser Permanente is dedicated to care innovations, clinical research, health education and the support of community health. For more information, go to: kp.org/share.
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SOURCE Kaiser Permanente